Ethereum’s network revenue plummets 95%, signaling L2 dominance over transaction fees.
ETH struggles below $1,839 resistance as investor sentiment weakens amid revenue drop.
Bearish indicators persist, with RSI near oversold and MACD signaling continued decline.
Ethereum has just recorded one of its most disappointing milestones yet. For the first time in years, its 24-hour network revenue dropped below $100,000. This figure marks a 95% decline in transaction fee earnings. The plunge highlights the growing dominance of Layer 2 (L2) scaling solutions, which now capture the bulk of user activity.
As more developers and users shift to these platforms, Ethereum’s base layer finds itself increasingly sidelined. The blow to its core economic model raises concerns over its long-term sustainability and growth trajectory.
JUST IN: ETHEREUM 24H REVENUE DROPS BELOW $100K
Source: @degeneratenews https://t.co/HU3vWqJkIl pic.twitter.com/kxVGIol35x
— Mario Nawfal’s Roundtable (@RoundtableSpace) March 31, 2025
Layer 2s Take the Spotlight
The rising popularity of L2s like Arbitrum, Optimism, and Base has siphoned off critical transaction activity. These platforms offer lower fees and faster processing times. As a result, users no longer rely heavily on Ethereum’s mainnet for most interactions.
Consequently, the fee-based revenue that once kept the network thriving has now mostly shifted to the hands of app developers and protocol teams. While Ethereum still acts as the settlement layer, its profitability continues to erode.
Investor Sentiment Takes a Hit
Investor confidence has clearly wavered. With speculative interest fading, user growth has stalled significantly.
The recent data shows Ethereum’s price hovering at $1,808.67, down 1.70% in 24 hours. Its market cap stands at $218.22 billion, showing a decline of 1.83%. Meanwhile, trading volume surged to $13.59 billion, rising 36.78%, indicating high short-term volatility rather than sustained interest.
Key Technical Levels in Focus
Ethereum’s price has been stuck in a tight range between $1,780 and $1,839. Multiple attempts to break above the $1,830–$1,839 resistance zone have failed. This repeated rejection signals strong selling pressure.
On the downside, $1,780 remains a crucial support level. A drop below it could lead to deeper losses.
Momentum Indicators Show Bearish Signs
Technical indicators confirm the bearish sentiment. The Relative Strength Index (RSI) sits at 34.17, nearing oversold territory. A drop below 30 could potentially trigger a price bounce.
The MACD indicator also shows the MACD line below the signal line, suggesting continued downward momentum. However, the histogram indicates that selling pressure may be easing slightly.
The post Ethereum’s Fee Revenue Drops Below $100K—Is L2 Adoption Hurting Mainnet? appeared first on Daily Crypto Post.
